Case Law Details
In re Shri Kailash Chandra (GST AAAR Rajasthan)
We find that the Appellant had produced copies of the Volume-I and Volume-II of the Tender-Document No. 17/2016-17 dated 23.08.2016 issued by the Additional Chief Engineer , Public Health Engineering Department (PHED) , Region-II, Jodhpur inviting tenders for designing, providing, installation, commissioning, of 118 Nos. Solar Energy based bore well water pumping systems (with De-fluoridation unit of capacity moo LPH) including comprehensive operation and maintenance for a period of seven years in various fluoride affected villages/habitations in district of Pali , Jaisalmer and Jalore . They had submitted that they are in the process of bidding for the similar tender floated by PHED for designing, providing, installation, commissioning, operation and maintenance of solar energy based bore well water pumping systems , Reverse Osmosis Plant and operation and maintenance of Fluoride Control Project on ESCO and O & M contract.
On careful consideration of the above mentioned entries of the said notifications, we find that the Solar Energy based bore well water pumping system (hereinafter also referred to as “the System”) deserve classification under entry No. 234 of the Notification No. 01/2017-Central Tax (Rate) as ‘Solar Power based devices’ . The Appellant has contended that benefit of Notification Nos. 24/2018-Central Tax(Rate) and 27/2018- Central Tax(Rate) inserting ‘Explanation’ in the entry No. 234 ibid and inserting entry No. 38 ibid respectively should be available to them . After going through the amended entries 234 and 34 ibid , we find that the benefit is available only when the Solar Power based devices’ i.e. the System is supplied along with other goods and Services , one of which being a taxable service specified in the entry at S. No. 38 ibid . We find that a standard Solar Energy based bore well water pumping system comprises SPV panels, Structures, Storage tank, Controller, Pipe and Cables. The Appellant is also adding De-fluoridation unit (DFU) and also accomplishing the task of installation, commissioning, operation and maintenance of the System including DFU. DFU qualifies for other goods while Installation and Commissioning of the System are the Services which are not only taxable but are also being provided in relation to setting up of the System , a requirement of the ‘Explanation to entry No. 234 ibid and entry No.38 ibid. Thus, we find that the condition precedent to availment of the benefit of these entries i.e. “supply of other goods and Services also, one of which should be a taxable service specified in the entry No. 38 “, stands fulfilled .
In view of above, we hold that, with respect to a Tender, identical to the Tender-Document No. 17/2016-17 ibid, which has been enclosed with the application dated 14.11.2018 filed by the Applicant/Appellant before the AAR, in terms of supply of Goods and Services , the activities of supply, design, installation, commissioning and testing of solar energy based water pumping systems, whose time of supply falls after 31.12.2018, are both supply of Goods and supply of Services in terms of entry No. 234, read with entry No. 38 ibid with rate of GST as prescribed under these entries.
FULL TEXT OF ORDER OF APPELLATE AUTHORITY OF ADVANCE RULING, RAJASTHAN
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